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By Chukwuma Umeorah
Trading activity on the Nigerian equities market declined sharply last week as total volume traded dropped to 3.95 billion shares from 8.76 billion shares recorded in the previous week, reflecting a slowdown in investor participation despite sustained value turnover.
Data for the week ended March 27 from the Nigerian Exchange (NGX) showed that the total value of transactions also fell to N201.31 billion from N267.25 billion, even as the number of deals rose to 359,642, indicating a shift towards smaller-sized trades.
The market closed the week on a marginal negative note, with the All-Share Index (ASI) declining by 0.12 per cent to 200,913.06 points, suggesting mild profit-taking after the recent rally that pushed equities to record levels.
Activity was concentrated in a few sectors, with the financial services industry dominating trading, accounting for 72.94 per cent of total volume and 50.80 per cent of total value traded. The ICT sector followed with transactions worth N45.17 billion, while the agriculture sector recorded N6.63 billion in trades.
A small group of banking stocks continued to drive liquidity in the market, as Wema Bank Plc, Access Holdings Plc and United Bank for Africa Plc accounted for a combined 1.45 billion shares valued at N43.19 billion, representing 36.65 per cent of total volume and 21.45 per cent of value traded.
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Market breadth remained relatively balanced but weakened slightly, with 47 equities recording price gains compared to 45 losers, while 56 stocks closed unchanged. This reflects cautious sentiment among investors, with selective positioning across counters.
Among the top gainers, Zichis Agro Allied Industries Plc gained 60.72 per cent to close at N13.79 per share, followed by Premier Paints Plc which rose by 60.26 per cent to N37.50. John Holt Plc advanced by 59.92 per cent to N18.95, while Legend Internet Plc appreciated by 25.00 per cent to N7.50 per share. McNichols Plc also gained 20.65 per cent to close at N7.42.
On the losers’ chart, Cadbury Nigeria Plc declined by 10.00 per cent, Austin Laz & Company Plc fell by 9.93 per cent, while Alex Industries Plc dropped by 9.91 per cent. HMC Allied Plc lost 9.85 per cent and FTN Cocoa Processors Plc shed 9.62 per cent over the week.
Sectoral performance was mixed, as indices such as insurance and oil and gas posted gains, while the banking index declined, contributing to the overall dip in the market.
Daily trading data showed fluctuating activity levels throughout the week, with stronger participation recorded at the start of the week before tapering off towards the close, reinforcing the trend of weakening momentum.
Analysts at Cowry notes that the sharp decline in volume alongside relatively firm transaction values suggests that investors are rotating into higher-priced stocks, even as overall participation in the equities market moderates.
